I received both a W-2 and a 1099-nec for the same work/employer. I entered both into TurboTax and now it won't let me process electronically because of the less than $1 amount in box 1 on the W2.
When I asked the employer why they issued both, they said:
"The FEDERAL you are a contractor and wages were reported as such on the 1099 w/no federal taxes w/held to the IRS
The STATE W2 was sent for the filing of your STATE income – and reported to the state of California ONLY
If you have further questions – please contact your tax professional – this is all due to your state legislatures wanting their state taxes and declaring you as an employee, instead of a contractor for STATE taxation purposes."
So my main question is:
Does this mean that I shouldn't enter the W2 for federal, only for state input? (By the way, the state is CA), if not, how should I be processing this situation in TurboTax?
Here is what was on the W2/1099nec
W2 boxes
box1: $0.01
box14: CASDI $11.16
box16: $928.21
box17: $0.00
1099-nec boxes
box1: $928.21
no other boxes
